Smart investors know that buying property in a thriving city is a good idea. But the prices of houses in cities like San Francisco have become too expensive for most. Even the homes in cities that are slowly bouncing back from the Great Recession already average around $400k. This is because the U.S. housing market continues to indicate a promising and exciting recovery.
If you are planning to invest in real estate, following is a list of cities with the fastest rising property values:
Although Nevada still suffers from a weakened economy and a high unemployment rate, northwestern Reno’s housing market has significantly improved. Homes in the area have had their prices increased by 26%.
San Jose, California
With home values increasing by 10.4%, San Jose is not only in the recovery phase but has grown beyond its pre-recession level with home construction at 103.8% of its pre-recession pace, making it one of the fastest growing cities in the country.
Rochester, New York
Home values in Rochester increased by over 40% with the home value median increasing to $304,000 by the end of 2014. Based on Zillow’s real estate data, the city now ranks 16th among cities with the fastest-increasing home values in the U.S.
As of 2013, an average home for sale in Seattle was on the market for only 23 days, the fourth shortest inventory period in the U.S. The successful real estate market in the Seattle-Everett-Bellevue area is partly the result of corporate involvement.
Raleigh, North Carolina
Raleigh’s median home value which used to be $194,000 has gone up 4.2% from last year. The low density population and affordable housing in this city are predicted to raise that figure by another 3.6% in 2016.
San Diego, California
The recovery of San Diego’s housing market is due to the increasing demand for houses and their increasing prices. Houses in this city have been selling fast even with a median price of $429,000, twice the $196,000 national median.
Myrtle Beach, South Carolina
Prices for single family houses rose by 10% with an overall increase in home prices by 11.7% since 2013. According to Coastal Carolinas Association of Realtors CEO Laura Crowther, new construction has undercut future home price increases.
Ann Arbor, Michigan
Ann Arbor’s economy is driven primarily by the University of Michigan’s aggressive attitude towards real estate and development projects; there is always demand for housing supply, especially from new residents comprised of UM staff and faculty.
San Jose, California
Homes in San Jose are selling like hotcakes, too, even at the price of almost $700,000 each, with houses staying on the market for only 18 days. This translates to a decline of 64% in time availability of houses for sale, the largest change so far in the country.
The skyrocketing prices of rentals have been driving buyers, especially first timers, into this city’s housing market. This has increased the average home price by as much as 5% from their asking price.
Salt Lake City, Utah
A positive trend has resulted in the decline of foreclosures in this city as residential property prices increased by 11.8% in 2013 and 5.9% in 2014. Additionally, the volume of troubled mortgages – those with negative equity – decreased as well.